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| Image Credit: Nicholas Eckhart |
Things will only get worse before they get better. Walmart is still going downhill. At first, the holiday season did not go so hot for them as shoppers did not spend very much at their stores with increasing competition and prices. Competition continues to increase as they lose more and more customers. They still had to cut their prices after the holiday season in order to attract consumers. In addition, the bad weather has forced them to shut down many of their stores due to the result of poor sales. Very little shoppers wanted to go out to shop during the snowstorms. But who can blame them, right?
What hit them the hardest? What do they claim is the biggest factor in their major 21% decline in profits for the fourth quarter? Walmart says it's the cut in food stamps after the temporary increase. Consequently, it has made it difficult for their customers to spend at their stores. Walmart believes if they were to eliminate the impact of the reduction of food stamps, the numbers would have remained the same.
Reference: HuffingtonPost
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